The UK based data analytics and political consulting firm has been under fire in various countries for allegedly harvesting data from nearly 87 million Facebook users and leveraging them for political campaigns.
Mr Collins added: "I discussed this this morning with Elizabeth Denham, the information commissioner".
Cambridge Analytica has been linked to Donald Trump's 2016 presidential campaign. By 2014, Facebook had updated their terms and conditions which no longer permitted new 3rd party applications to harvest friends' data or be used for psychometric profiling.
The Federal Trade Commission in the US, meanwhile, also is investigating Facebook.
In a statement, Cambridge Analytica said: "Over the past several months, Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the company's efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas".
Even as it maintained its innocence, Cambridge Analytica acknowledged that the "siege of media coverage has driven away virtually all of the Company's customers and suppliers". The Indian government too has shot-off notices to both Facebook and Cambridge Analytica, confronting them with questions on data breach issue.
Facebook fired employees for stalking users
Security researcher Jackie Stokes reported the issue to Facebook. "Everyone deserves to feel safe, even on the internet".
Since the discovery of the data-sharing lapse, Facebook CEO Mark Zuckerberg has promised to tighten security protocol and crack down on data-mining companies who access the vast social network.
Damian Collins, chairman of the Commons Digital, Culture, Media and Sport (DCMS) Committee, said Cambridge Analytica and its parent company SCL Group "cannot be allowed to delete their data history by closing".
The two women are daughters of the hedge fund billionaire Robert Mercer, who is reported to have been one of Cambridge Analytica's major investors.
The chair of a UK Parliament committee investigating the firm's activities also raised concerns about CA and SCL Elections' move to shut down.
And the contact address given for Rebekah Mercer is the same location as Cambridge Analytica's NY operation. Whichever way you look at it, the sheer amount of data that could have been sourced surpasses the level of current known mass-surveillance techniques used by governments. It sought information on Facebook to build psychological profiles on a large portion of the United States electorate, media reports said.
The company at the centre of Facebook Inc.'s recent privacy scandal is shutting down.
Alexander Nix, the ex-chief of Cambridge Analytica, and Julian Wheatland were listed as directors of Emerdata but also as directors of some of the wider SCL Group of companies.